Talk about Shanghai apartments

I bought a two-bedroom Shanghai apartment in Lujiazui, the trade and financial district in Pudong.

The RegaliaI bought it in 1994. I was one of those naive Singaporeans who thought money could be made in China's red-hot property market. We were wrong....so very wrong! Many of us ended up without even seeing a brick on the Shanghai apartment site, and worse ... losing every dollar that was invested! I was one of the luckier ones who finally managed to sell off my apartment after about 12 years and get back the capital. But if I included the costs of spending months fighting for the title deed and the return of stamp fee the developer had overcharged us (about Sing $10,000), and the many problems with the developer, the management office, rental agents and tenants, then my little venture into China property market was a big mistake.

When Deng Xiaoping was in charge, China opened its door wider and welcomed foreign investments. And building luxury condos and commercial buildings and selling them to foreigners was one sure way of attracting foreign funds into China. So property developers in China and Hong Kong joined forces and easily acquired lands in cities like Beijing, Shanghai and Guangzhou to build condos and commercial Shanghai apartments for foreign investors. Most of these property developers from Hong Kong and China had very ambitious plans, so ambitious that they threw all cautions aside. Many did not deal only with one or two projects at one time. Without much control by the govt on land acquisition and bank loan approvals, they just went ahead with several building projects all at one go. Reason? If they could make tons of money by borrowing money easily from the banks and if there were a lot of ready buyers, especially from wealthy overseas Chinese, why not?

Singapore in the 90s was doing very well economically and its citizens were eager to invest their money in properties; but as the costs of buying properties in Singapore escalated, they looked for properties elsewhere, such as Malaysia, Australia and China. Of course, the property developers overseas could somehow smell our Singaporean money. So they came to exhibit their "wares". On weekends you could see many of them displaying their project plans and distributing glossy brochures in exhibition halls and 5-star hotels. And Singaporeans, flushed with money, came in droves to see the exhibitions. They were impressed by the project plans and the building models on display. Moreover, compared with the houses in Singapore, they were so very cheap, cheap, cheap! Of course, "kiasu" Singaporeans were afraid to lose out to others; so they came in large numbers and queued up to buy.